Colorado 2024 Regular Session

Colorado House Bill HB1008 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-0124.02 Yelana Love x2295
1	8		HOUSE BILL 24-1008
2		-	BY REPRESENTATIVE(S) Duran and Froelich, Epps, Brown,
3		-	deGruy Kennedy, Garcia, Hamrick, Hernandez, Joseph, Lieder, Lindstedt,
4		-	Mabrey, Mauro, Ricks, Rutinel, Story, Velasco, Vigil, Amabile, Bacon,
5		-	Bird, Boesenecker, Clifford, Daugherty, Herod, Jodeh, Kipp, Lindsay,
6		-	Lukens, Marshall, Martinez, Marvin, McCormick, Ortiz, Parenti, Sirota,
7		-	Titone, Weissman, Willford, Young;
8		-	also SENATOR(S) Danielson and Kolker, Exum, Gonzales, Marchman,
9		-	Sullivan, Cutter, Fields, Jaquez Lewis, Michaelson Jenet, Priola
10		-	.
	9	+	House Committees Senate Committees
	10	+	Business Affairs & Labor Business, Labor, & Technology
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
11	13		C
12		-	ONCERNING MEASURES TO EXPAND GENERAL CONTRACTOR
13		-	ACCOUNTABILITY FOR WAGE CLAIMS INVOLVING CONTRACTORS IN
14		-	THE CONSTRUCTION INDUSTRY
15		-	, AND, IN CONNECTION THEREWITH ,
16		-	MAKING AN APPROPRIATION.
17		-
18		-	Be it enacted by the General Assembly of the State of Colorado:
19		-	SECTION 1. Legislative declaration. (1) The general assembly
20		-	finds and declares that:
21		-	(a) Wage theft, the failure to pay an employee the employee's legally
22		-	earned wages, is the largest form of theft in the United States, and the
23		-	Colorado Fiscal Institute estimates that wage theft transfers nearly $728
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. million dollars to employers from the pockets of approximately 438,260
32		-	Colorado workers each year. Minor workers, women, and workers of color
33		-	are disproportionately impacted by wage theft.
34		-	(b) Wage theft not only affects Coloradans' ability to pay rent and
35		-	put food on the table, but it also denies our state and local governments
36		-	between $25 million and $42 million in revenue each year;
37		-	(c) To combat wage theft, the state must keep up with changes in the
38		-	marketplace. One of the most significant changes involves the increasing
39		-	use of labor market intermediaries to directly employ workers. Too often,
40		-	this fissuring of the labor market is used to outsource an employer's
41		-	responsibility to workers required by labor and employment laws.
42		-	(d) Construction is an industry with extraordinary labor market
43		-	fissuring, with layers upon layers of contractors, subcontractors, labor
44		-	brokers, staffing agencies, etc. This incentivizes wage theft by favoring
45		-	inexpensive subcontractors. It also creates barriers to wage recovery
46		-	because undercapitalized subcontractors cannot or will not pay wages.
47		-	(e) Due in part to these practices, workers in the construction
48		-	industry are disproportionately likely to experience wage theft. Federal
49		-	Department of Labor, Wage and Hour Division data show that Colorado's
50		-	construction industry has double the number of wage theft violations that
51		-	it should have in proportion to the number of workers in the industry. This
52		-	is consistent with Colorado Department of Labor and Employment data
53		-	showing that while only 7% of Colorado workers are in construction,
54		-	construction workers make up 17% of administrative wage theft complaints
55		-	that are found valid after a full agency investigation.
56		-	(f) Federal data also show that in fiscal years 2022 and 2023, the
57		-	construction industry saw the highest dollar amount of wage theft of any
58		-	industry, totaling over $35 million in federal fiscal year 2023 alone. In
59		-	addition, the construction industry has among the highest number of
60		-	individual workers who are victims of wage theft.
61		-	(g) To effectively combat wage theft in the construction industry,
62		-	the state needs a tailored solution to ensure not only that workers have
63		-	substantive legal protection against wage theft, but also that the state has the
64		-	right alignment of business incentives to prevent wage theft before it
65		-	PAGE 2-HOUSE BILL 24-1008 happens and the right access to capital to ensure that workers can recover
66		-	stolen wages;
67		-	(h) Creating general contractor accountability for wage theft
68		-	committed on their projects by a subcontractor at any tier provides such a
69		-	tailored solution. Such accountability will enlist general contractors in the
70		-	fight against wage theft, incentivize engagement with law-abiding
71		-	subcontractors who pay their workers correctly, and encourage general
72		-	contractors to root out bad actors who underbid for contracts knowing they
73		-	will make up the difference by denying their workers the wages they earned.
74		-	(i) While creating general contractor liability for wage claims, this
75		-	act will also ensure that general contractors can efficiently seek
76		-	reimbursement from subcontractor employers for any amounts paid out for
77		-	wage claims owed to the subcontractors' employees. In this way, the act will
78		-	ensure that workers get paid, but will not leave general contractors on the
79		-	hook for a subcontractor's wage debts.
80		-	(j) This act narrowly focuses on general contractor liability for wage
81		-	debts owed to the workers on their projects who were engaged by the
82		-	general contractor's subcontractors at any tier. Such liability does not extend
83		-	to wage debts owed to the workers of general contractor suppliers or other
84		-	business partners. Also, liability for debts owed based on a wage claim or
85		-	investigation does not include liability for a subcontractor's retaliatory acts.
86		-	(k) This act does not alter the division of labor standards and
87		-	statistics' existing obligation to treat a notice of citation or a notice of
88		-	assessment issued to an employer for a violation of wage law as a public
89		-	record pursuant to section 8-1-115 (1)(b), Colorado Revised Statutes, and
90		-	does not require the additional publication of a notice of citation or a notice
91		-	of assessment issued to a general contractor that is not the employer of an
92		-	employee who is the victim of wage theft; and
93		-	(l) With this act, Colorado hopes not only to ensure that workers get
94		-	paid their legally earned wages, but also to partner with the many general
95		-	contractors who are abiding by the law and want to ensure all workers on
96		-	their job sites are paid in full and on time.
97		-	(2) Therefore, the general assembly declares that wage theft is an
98		-	unacceptable business practice, and the state should use or adopt all
99		-	PAGE 3-HOUSE BILL 24-1008 available tools to prevent wage theft before it happens and give workers the
100		-	means to recover stolen wages.
101		-	SECTION 2. In Colorado Revised Statutes, 8-4-101, add (1.5),
102		-	(8.7), (11.5), and (12.5) as follows:
103		-	8-4-101. Definitions. As used in this article 4, unless the context
104		-	otherwise requires:
	14	+	ONCERNING MEASURES TO EXPAND GENERAL CONTRACTOR101
	15	+	ACCOUNTABILITY FOR WAGE CLAIMS INVOLVING CONTRACTORS102
	16	+	IN THE CONSTRUCTION
	17	+	INDUSTRY, AND, IN CONNECTION103
	18	+	THEREWITH, MAKING AN APPROPRIATION .104
	19	+	Bill Summary
	20	+	(Note: This summary applies to this bill as introduced and does
	21	+	not reflect any amendments that may be subsequently adopted. If this bill
	22	+	passes third reading in the house of introduction, a bill summary that
	23	+	applies to the reengrossed version of this bill will be available at
	24	+	http://leg.colorado.gov
	25	+	.)
	26	+	For wage claims brought by individuals working in the
	27	+	construction industry, the bill:
	28	+	! Requires that a subcontractor that receives a written
	29	+	SENATE
	30	+	3rd Reading Unamended
	31	+	May 7, 2024
	32	+	SENATE
	33	+	2nd Reading Unamended
	34	+	May 4, 2024
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	April 19, 2024
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	April 18, 2024
	41	+	HOUSE SPONSORSHIP
	42	+	Duran and Froelich, Epps, Brown, deGruy Kennedy, Garcia, Hamrick, Hernandez, Joseph,
	43	+	Lieder, Lindstedt, Mabrey, Mauro, Ricks, Rutinel, Story, Velasco, Vigil, Amabile, Bacon,
	44	+	Bird, Boesenecker, Clifford, Daugherty, Herod, Jodeh, Kipp, Lindsay, Lukens, Marshall,
	45	+	Martinez, Marvin, McCormick, Ortiz, Parenti, Sirota, Titone, Weissman, Willford, Young
	46	+	SENATE SPONSORSHIP
	47	+	Danielson and Kolker, Exum, Gonzales, Marchman, Sullivan, Cutter, Fields, Jaquez
	48	+	Lewis, Michaelson Jenet, Priola
	49	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	50	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	51	+	Dashes through the words or numbers indicate deletions from existing law. demand for payment forward a copy of the written demand
	52	+	for payment to the general contractor within 3 business
	53	+	days after receipt;
	54	+	! Specifies that a general contractor and a subcontractor that
	55	+	is a direct employer of an employee are jointly and
	56	+	severally liable for all debts owed based on a wage claim or
	57	+	investigation that are incurred by the subcontractor acting
	58	+	under, by, or for the general contractor; and
	59	+	! Allows a general contractor to require the following
	60	+	information from each subcontractor acting under, by, or
	61	+	for the general contractor:
	62	+	! Pay data;
	63	+	! Contact information; and
	64	+	! An affidavit attesting to whether the subcontractor
	65	+	has participated in a civil or administrative
	66	+	proceeding within the last 5 years and, if so, the
	67	+	outcome of the proceeding.
	68	+	Be it enacted by the General Assembly of the State of Colorado:1
	69	+	SECTION 1. Legislative declaration. (1) The general assembly2
	70	+	finds and declares that:3
	71	+	(a) Wage theft, the failure to pay an employee the employee's4
	72	+	legally earned wages, is the largest form of theft in the United States, and5
	73	+	the Colorado Fiscal Institute estimates that wage theft transfers nearly6
	74	+	$728 million dollars to employers from the pockets of approximately7
	75	+	438,260 Colorado workers each year. Minor workers, women, and8
	76	+	workers of color are disproportionately impacted by wage theft. 9
	77	+	(b) Wage theft not only affects Coloradans' ability to pay rent and10
	78	+	put food on the table, but it also denies our state and local governments11
	79	+	between $25 million and $42 million in revenue each year;12
	80	+	(c) To combat wage theft, the state must keep up with changes in13
	81	+	the marketplace. One of the most significant changes involves the14
	82	+	increasing use of labor market intermediaries to directly employ workers.15
	83	+	Too often, this fissuring of the labor market is used to outsource an16
	84	+	1008-2- employer's responsibility to workers required by labor and employment1
	85	+	laws.2
	86	+	(d) Construction is an industry with extraordinary labor market3
	87	+	fissuring, with layers upon layers of contractors, subcontractors, labor4
	88	+	brokers, staffing agencies, etc. This incentivizes wage theft by favoring5
	89	+	inexpensive subcontractors. It also creates barriers to wage recovery6
	90	+	because undercapitalized subcontractors can't or won't pay wages. 7
	91	+	(e) Due in part to these practices, workers in the construction8
	92	+	industry are disproportionately likely to experience wage theft. Federal9
	93	+	Department of Labor, Wage and Hour Division data show that Colorado's10
	94	+	construction industry has double the number of wage theft violations that11
	95	+	it should have in proportion to the number of workers in the industry.12
	96	+	This is consistent with Colorado Department of Labor and Employment13
	97	+	data showing that while only 7% of Colorado workers are in construction,14
	98	+	construction workers make up 17% of administrative wage theft15
	99	+	complaints that are found valid after a full agency investigation. 16
	100	+	(f) Federal data also show that in fiscal years 2022 and 2023, the17
	101	+	construction industry saw the highest dollar amount of wage theft of any18
	102	+	industry, totaling over $35 million in federal fiscal year 2023 alone. In19
	103	+	addition, the construction industry has among the highest number of20
	104	+	individual workers who are victims of wage theft.21
	105	+	(g) To effectively combat wage theft in the construction industry,22
	106	+	the state needs a tailored solution to ensure not only that workers have23
	107	+	substantive legal protection against wage theft, but also that the state has24
	108	+	the right alignment of business incentives to prevent wage theft before it25
	109	+	happens and the right access to capital to ensure that workers can recover26
	110	+	stolen wages;27
	111	+	1008
	112	+	-3- (h) Creating general contractor accountability for wage theft1
	113	+	committed on their projects by a subcontractor at any tier provides such2
	114	+	a tailored solution. Such accountability will enlist general contractors in3
	115	+	the fight against wage theft, incentivize engagement with law-abiding4
	116	+	subcontractors who pay their workers correctly, and encourage general5
	117	+	contractors to root out bad actors who underbid for contracts knowing6
	118	+	they will make up the difference by denying their workers the wages they7
	119	+	earned.8
	120	+	(i) While creating general contractor liability for wage claims, this9
	121	+	act will also ensure that general contractors can efficiently seek10
	122	+	reimbursement from subcontractor employers for any amounts paid out11
	123	+	for wage claims owed to the subcontractors' employees. In this way, the12
	124	+	act will ensure that workers get paid, but will not leave general13
	125	+	contractors on the hook for a subcontractor's wage debts.14
	126	+	(j) This act narrowly focuses on general contractor liability for15
	127	+	wage debts owed to the workers on their projects who were engaged by16
	128	+	the general contractor's subcontractors at any tier. Such liability does not17
	129	+	extend to wage debts owed to the workers of general contractor suppliers18
	130	+	or other business partners. Also, liability for debts owed based on a wage19
	131	+	claim or investigation does not include liability for a subcontractor's20
	132	+	retaliatory acts.21
	133	+	(k) This act does not alter the division of labor standards and22
	134	+	statistics' existing obligation to treat a notice of citation or a notice of23
	135	+	assessment issued to an employer for a violation of wage law as a public24
	136	+	record pursuant to section 8-1-115 (1)(b), Colorado Revised Statutes, and25
	137	+	does not require the additional publication of a notice of citation or a26
	138	+	notice of assessment issued to a general contractor that is not the27
	139	+	1008
	140	+	-4- employer of an employee who is the victim of wage theft;1
	141	+	(l) With this act, Colorado hopes not only to ensure that workers2
	142	+	get paid their legally earned wages, but also to partner with the many3
	143	+	general contractors who are abiding by the law and want to ensure all4
	144	+	workers on their job sites are paid in full and on time; and5
	145	+	(m) Therefore, the general assembly declares that wage theft is an6
	146	+	unacceptable business practice, and the state should use or adopt all7
	147	+	available tools to prevent wage theft before it happens and give workers8
	148	+	the means to recover stolen wages.9
	149	+	SECTION 2. In Colorado Revised Statutes, 8-4-101, add (1.5),10
	150	+	(8.7), (11.5), and (12.5) as follows:11
	151	+	8-4-101. Definitions. As used in this article 4, unless the context12
	152	+	otherwise requires:13
105	153		(1.5) "C
106		-	ONSTRUCTION CONTRACT " MEANS AN EXPRESS OR IMPLIED
107		-	AGREEMENT
108		-	:
	154	+	ONSTRUCTION CONTRACT " MEANS AN EXPRESS OR IMPLIED14
	155	+	AGREEMENT:15
109	156		(a) F
110		-	OR THE CONSTRUCTION , RECONSTRUCTION, ALTERATION,
111		-	MAINTENANCE, MOVING, OR DEMOLITION OF ANY BUILDING, STRUCTURE, OR
112		-	IMPROVEMENT
113		-	; OR
114		-	(b) RELATING TO THE EXCAVATION OF OR OTHER DEVELOPMENT OF
115		-	OR IMPROVEMENT TO LAND
116		-	.
	157	+	OR THE CONSTRUCTION , RECONSTRUCTION, ALTERATION,16
	158	+	MAINTENANCE, MOVING, OR DEMOLITION OF ANY BUILDING, STRUCTURE,17
	159	+	OR IMPROVEMENT; OR18
	160	+	(b) R
	161	+	ELATING TO THE EXCAVATION OF OR OTHER DEVELOPMENT19
	162	+	OF OR IMPROVEMENT TO LAND .20
117	163		(8.7) "G
118		-	ENERAL CONTRACTOR" MEANS ANY PERSON, INCLUDING A
119		-	CONSTRUCTION MANAGER
120		-	, JOINT VENTURE, OR ANY COMBINATION THEREOF,
121		-	ALONG WITH THE PERSON'S SUCCESSORS, HEIRS, OR ASSIGNS, THAT ENTERS
122		-	INTO A CONSTRUCTION CONTRACT WITH AN OWNER
123		-	. "GENERAL
124		-	CONTRACTOR
125		-	" INCLUDES AN OWNER THAT ENTERS INTO A CONSTRUCTION
126		-	CONTRACT WITH MORE THAN ONE CONTRACTOR OR SUBCONTRACTOR
127		-	, IF
128		-	SUCH CONTRACT RELATES TO REAL PROPERTY OTHER THAN PROPERTY FOR
129		-	WHICH THE OWNER COULD CLAIM THE HOMESTEAD EXEMPTION PURSUANT
130		-	TO PART
131		-	2 OF ARTICLE 41 OF TITLE 38.
	164	+	ENERAL CONTRACTOR" MEANS ANY PERSON, INCLUDING21
	165	+	A CONSTRUCTION MANAGER , JOINT VENTURE, OR ANY COMBINATION22
	166	+	THEREOF, ALONG WITH THE PERSON'S SUCCESSORS, HEIRS, OR ASSIGNS,23
	167	+	THAT ENTERS INTO A CONSTRUCTION CONTRACT WITH AN OWNER .24
	168	+	"G
	169	+	ENERAL CONTRACTOR " INCLUDES AN OWNER THAT ENTERS INTO A25
	170	+	CONSTRUCTION CONTRACT WITH MORE THAN ONE CONTRACTOR OR26
	171	+	SUBCONTRACTOR, IF SUCH CONTRACT RELATES TO REAL PROPERTY OTHER27
	172	+	1008
	173	+	-5- THAN PROPERTY FOR WHICH THE OWNER COULD CLAIM THE HOMESTEAD1
	174	+	EXEMPTION PURSUANT TO PART 2 OF ARTICLE 41 OF TITLE 38.2
132	175		(11.5) "O
133		-	WNER" MEANS ANY PERSON WITH AN OWNERSHIP INTEREST
134		-	IN REAL PROPERTY
135		-	, WHETHER THE INTEREST IS IN FEE, AS VENDEE UNDER A
136		-	CONTRACT TO PURCHASE
137		-	, AS LESSEE, OR ANOTHER INTEREST OR ESTATE LESS
138		-	THAN FEE
139		-	.
	176	+	WNER" MEANS ANY PERSON WITH AN OWNERSHIP3
	177	+	INTEREST IN REAL PROPERTY , WHETHER THE INTEREST IS IN FEE , AS4
	178	+	VENDEE UNDER A CONTRACT TO PURCHASE , AS LESSEE, OR ANOTHER5
	179	+	INTEREST OR ESTATE LESS THAN FEE.6
140	180		(12.5) "S
141		-	UBCONTRACTOR" MEANS ANY PERSON THAT IS A PARTY TO
142		-	AN EXPRESS OR IMPLIED CONTRACT WITH A GENERAL CONTRACTOR OR WITH
143		-	A GENERAL CONTRACTOR
144		-	'S SUBCONTRACTORS AT ANY TIER TO PERFORM ANY
145		-	PORTION OF WORK WITHIN THE SCOPE OF THE GENERAL CONTRACTOR
146		-	'S
147		-	CONSTRUCTION CONTRACT WITH THE OWNER
148		-	, INCLUDING A PERSON THAT
149		-	HAS NO DIRECT PRIVITY OF CONTRACT WITH THE GENERAL CONTRACTOR
150		-	.
151		-	PAGE 4-HOUSE BILL 24-1008 SECTION 3. In Colorado Revised Statutes, 8-4-109, add (3)(a.3)
152		-	as follows:
153		-	8-4-109. Termination of employment - payments required - civil
154		-	penalties - payments to surviving spouse or heir. (3) (a.3) (I) I
155		-	F AN
156		-	EMPLOYER THAT RECEIVES A WRITTEN DEM AND FOR PAYMENT UNDER
157		-	SUBSECTION
158		-	(3)(a) OF THIS SECTION IS A SUBCONTRACTOR, THE EMPLOYER
159		-	SHALL FORWARD A COPY OF THE WRITTEN DEMAND FOR PAYMENT TO THE
160		-	GENERAL CONTRACTOR WITHIN THREE BUSINESS DAYS AFTER RECEIVING THE
161		-	WRITTEN DEMAND
162		-	. THE EMPLOYER SHALL ALSO SIMULTANEOUSLY SEND TO
163		-	THE WAGE CLAIMANT A COPY OF THE CORRESPONDENCE SENT TO THE
164		-	GENERAL CONTRACTOR AND THE GENERAL CONTRACTOR
165		-	'S NAME AND
166		-	ADDRESS
167		-	.
	181	+	UBCONTRACTOR" MEANS ANY PERSON THAT IS A PARTY7
	182	+	TO AN EXPRESS OR IMPLIED CONTRACT WITH A GENERAL CONTRACTOR OR8
	183	+	WITH A GENERAL CONTRACTOR 'S SUBCONTRACTORS AT ANY TIER TO9
	184	+	PERFORM ANY PORTION OF WORK WITHIN THE SCOPE OF THE GENERAL10
	185	+	CONTRACTOR'S CONSTRUCTION CONTRACT WITH THE OWNER , INCLUDING11
	186	+	A PERSON THAT HAS NO DIRECT PRIVITY OF CONTRACT WITH THE GENERAL12
	187	+	CONTRACTOR.13
	188	+	SECTION
	189	+	3. In Colorado Revised Statutes, 8-4-109, add (3)(a.3)14
	190	+	as follows:15
	191	+	8-4-109. Termination of employment - payments required -16
	192	+	civil penalties - payments to surviving spouse or heir. (3) (a.3) (I) I
	193	+	F17
	194	+	AN EMPLOYER THAT RECEIVES A WR ITTEN DEMAND FOR PAYMENT UNDER18
	195	+	SUBSECTION (3)(a) OF THIS SECTION IS A SUBCONTRACTOR, THE EMPLOYER19
	196	+	SHALL FORWARD A COPY OF THE WRITTEN DEMAND FOR PAYMENT TO THE20
	197	+	GENERAL CONTRACTOR WITHIN THREE BUSINESS DAYS AFTER RECEIVING21
	198	+	THE WRITTEN DEMAND . THE EMPLOYER SHALL ALSO SIMULTANEOUSLY22
	199	+	SEND TO THE WAGE CLAIMANT A COPY OF THE CORRESPONDENCE SENT TO23
	200	+	THE GENERAL CONTRACTOR AND THE GENERAL CONTRACTOR 'S NAME AND24
	201	+	ADDRESS.25
168	202		(II) A
169		-	N EMPLOYER THAT FAILS TO FORWARD A WRITTEN DEMAND FOR
170		-	PAYMENT TO A GENERAL CONTRACTOR AS REQUIRED IN SUBSECTION
171		-	(3)(a.3)(I) OF THIS SECTION IS SUBJECT TO A FINE OF TWO THOUSAND
172		-	DOLLARS
173		-	, PAID TO THE GENERAL CONTRACTOR , IN ADDITION TO ANY
174		-	AMOUNTS OWED PURSUANT TO SECTION
175		-	8-4-110.5 OR ANY OTHER LAW.
176		-	SECTION 4. In Colorado Revised Statutes, add 8-4-110.5 as
177		-	follows:
178		-	8-4-110.5. General contractor responsibility for wage claims in
179		-	the construction industry. (1) (a) A
180		-	GENERAL CONTRACTOR ENTERING
181		-	INTO A CONSTRUCTION CONTRACT IN THIS STATE IS LIABLE FOR ALL
182		-	AMOUNTS OWED TO AN EMPLOYEE PURSUANT TO THIS ARTICLE
183		-	4 OR ARTICLE
184		-	6 OF THIS TITLE 8 FOR THE EMPLOYEE'S LABOR, CONSTRUCTION, OR OTHER
185		-	WORK INCLUDED WITHIN THE SCOPE OF THE CONSTRUCTION CONTRACT
186		-	,
187		-	INCLUDING AMOUNTS OWED BY A SUBCONTRACTOR AT ANY TIER ACTING
188		-	UNDER
189		-	, BY, OR FOR THE GENERAL CONTRACTOR OR THE GENERAL
190		-	CONTRACTOR
191		-	'S SUBCONTRACTORS.
192		-	(b) T
193		-	HE GENERAL CONTRACTOR 'S RESPONSIBILITY UNDER
194		-	SUBSECTION
195		-	(1)(a) OF THIS SECTION DOES NOT EXTEND TO DAMAGES OWED
196		-	FOR RETALIATION COMMITTED BY A SUBCONTRACTOR PURSUANT TO SECTION
197		-	8-4-120 (3).
198		-	(2) U
199		-	NLESS THE VIOLATION IS CAUSED BY THE GENERAL
200		-	CONTRACTOR
201		-	'S LACK OF PAYMENT TO THE SUBCONTRACTOR IN ACCORDANCE
202		-	PAGE 5-HOUSE BILL 24-1008 WITH THE TERMS OF THE CONTRACT BETWEEN THE GENERAL CONTRACTOR
203		-	AND THE SUBCONTRACTOR
204		-	:
205		-	(a) A
206		-	SUBCONTRACTOR EMPLOYER SHALL INDEMNIFY THE GENERAL
207		-	CONTRACTOR FOR
208		-	:
209		-	(I) A
210		-	LL AMOUNTS OWED BY THE GENERAL CONTRACTOR PURSUANT
211		-	TO SUBSECTION
212		-	(1) OF THIS SECTION DUE TO THE SUBCONTRACTOR 'S
213		-	VIOLATION OF THIS ARTICLE
214		-	4 OR ARTICLE 6 OF THIS TITLE 8; AND
215		-	(II) ALL ATTORNEY FEES PAID BY THE GENERAL CONTRACTOR TO
216		-	DEFEND AGAINST LIABILITY FOR SUBCONTRACTOR VIOLATIONS OF THIS
217		-	ARTICLE
218		-	4 OR ARTICLE 6 OF THIS TITLE 8;
	203	+	N EMPLOYER THAT FAILS TO FORWARD A WRITTEN DEMAND26
	204	+	FOR PAYMENT TO A GENERAL CONTRACTOR AS REQUIRED IN SUBSECTION27
	205	+	1008
	206	+	-6- (3)(a.3)(I) OF THIS SECTION IS SUBJECT TO A FINE OF TWO THOUSAND1
	207	+	DOLLARS, PAID TO THE GENERAL CONTRACTOR , IN ADDITION TO ANY2
	208	+	AMOUNTS OWED PURSUANT TO SECTION 8-4-110.5 OR ANY OTHER LAW.3
	209	+	SECTION 4. In Colorado Revised Statutes, add 8-4-110.5 as4
	210	+	follows:5
	211	+	8-4-110.5. General contractor responsibility for wage claims6
	212	+	in the construction industry. (1) (a) A GENERAL CONTRACTOR7
	213	+	ENTERING INTO A CONSTRUCTION CONTRACT IN THIS STATE IS LIABLE FOR8
	214	+	ALL AMOUNTS OWED TO AN EMPLOYEE PURSUANT TO THIS ARTICLE 4 OR9
	215	+	ARTICLE 6 OF THIS TITLE 8 FOR THE EMPLOYEE'S LABOR, CONSTRUCTION,10
	216	+	OR OTHER WORK INCLUDED WITHIN THE SCOPE OF THE CONSTRUCTION11
	217	+	CONTRACT, INCLUDING AMOUNTS OWED BY A SUBCONTRACTOR AT ANY12
	218	+	TIER ACTING UNDER, BY, OR FOR THE GENERAL CONTRACTOR OR THE13
	219	+	GENERAL CONTRACTOR 'S SUBCONTRACTORS.14
	220	+	(b) THE GENERAL CONTRACTOR'S RESPONSIBILITY UNDER15
	221	+	SUBSECTION (1)(a) OF THIS SECTION DOES NOT EXTEND TO DAMAGES16
	222	+	OWED FOR RETALIATION COMMITTED BY A SUBCONTRACTOR PURS UANT TO17
	223	+	SECTION 8-4-120 (3).18
	224	+	(2) UNLESS THE VIOLATION IS CAUSED BY THE GENERAL19
	225	+	CONTRACTOR'S LACK OF PAYMENT TO THE SUBCONTRACTOR IN20
	226	+	ACCORDANCE WITH THE TERMS OF THE CONTRACT BETWEEN THE GENERAL21
	227	+	CONTRACTOR AND THE SUBCONTRACTOR :22
	228	+	(a) A SUBCONTRACTOR EMPLOYER SHALL INDEMNIFY THE23
	229	+	GENERAL CONTRACTOR FOR :24
	230	+	(I) ALL AMOUNTS OWED BY THE GENERAL CONTRACTOR PURSUANT25
	231	+	TO SUBSECTION (1) OF THIS SECTION DUE TO THE SUBCONTRACTOR'S26
	232	+	VIOLATION OF THIS ARTICLE 4 OR ARTICLE 6 OF THIS TITLE 8; AND27
	233	+	1008
	234	+	-7- (II) ALL ATTORNEY FEES PAID BY THE GENERAL CONTRACTOR TO1
	235	+	DEFEND AGAINST LIABILITY FOR SUBCONTRACTOR VIOLATIONS OF THIS2
	236	+	ARTICLE 4 OR ARTICLE 6 OF THIS TITLE 8;3
	237	+	(b) A GENERAL CONTRACTOR MAY BRING A CROSSCLAIM FOR4
	238	+	INDEMNIFICATION AGAINST THE SUBCONTRACTOR EMPLOYER IN ANY5
	239	+	ACTION RELATED TO THE WAGE CLAIM .6
	240	+	(3) A SUBCONTRACTOR'S FAILURE TO INDEMNIFY THE GENERAL7
	241	+	CONTRACTOR IS NOT A DEFENSE TO ANY ACTION BROUGHT AGAINST THE8
	242	+	GENERAL CONTRACTOR PURSUANT TO SUBSECTION (1) OF THIS SECTION.9
	243	+	(4) A GENERAL CONTRACTOR MAY REQUIRE THE FOLLOWING10
	244	+	INFORMATION FROM EACH SUBCONTRACTOR ACTING UNDER , BY, OR FOR11
	245	+	THE GENERAL CONTRACTOR :12
	246	+	(a) P
	247	+	AY DATA SHOWING THE HOURS WORKED , PAY, OVERTIME, AND13
	248	+	DEDUCTIONS FOR EACH INDIVIDUAL WORKER ENGAGED BY THE14
	249	+	SUBCONTRACTOR, REGARDLESS OF WHETHER THE INDIVIDUAL WORKER IS15
	250	+	CLASSIFIED AS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR 'S16
	251	+	INDIVIDUAL LABORER. THE SUBCONTRACTOR SHALL REDACT THESE17
	252	+	RECORDS TO DISCLOSE ONLY THE LAST FOUR DIGITS OF THE INDIVIDUAL18
	253	+	WORKER'S SOCIAL SECURITY NUMBER OR INDIVIDUAL TAXPAYER19
	254	+	IDENTIFICATION NUMBER.20
	255	+	(b) C
	256	+	ONTACT INFORMATION FOR ALL ADDITIONAL21
	257	+	SUBCONTRACTORS THAT PERFORM ANY PORTION OF WORK WITHIN THE22
	258	+	SCOPE OF THE SUBCONTRACTOR 'S CONTRACT WITH THE GENERAL23
	259	+	CONTRACTOR OR WITH ANOTHER SUBCONTRACTOR THAT IS IN PRIVITY OF24
	260	+	CONTRACT WITH THE GENERAL CONTRACTOR ; AND25
	261	+	(c) (I) A
	262	+	N AFFIDAVIT ATTESTING TO WHETHER THE26
	263	+	SUBCONTRACTOR OR ANY OF ITS CURRENT PRINCIPALS HAS PARTICIPATED27
	264	+	1008
	265	+	-8- IN ANY CIVIL OR ADMINISTRATIVE PROCEEDING WITHIN THE PRECEDING1
	266	+	FIVE YEARS THAT INVOLVED ANY ALLEGATIONS OF A WAGE AND HOUR2
	267	+	VIOLATION AGAINST THE SUBCONTRACTOR OR PRINCIPAL UNDER LOCAL ,3
	268	+	STATE, OR FEDERAL LAW; AND4
	269	+	(II) I
	270	+	F THE PROCEEDING IS COMPLETE , THE OUTCOME OF THE5
	271	+	PROCEEDING, INCLUDING ANY DAMAGES , FEES, OR PENALTY AMOUNTS6
	272	+	PAID TO WORKERS OR TO A GOVERNMENT AGENCY .7 (5) A SUBCONTRACTOR'S FAILURE TO COMPLY WITH THIS SECTION8
	273	+	DOES NOT RELIEVE A GENERAL CONTRACTOR FROM LIABILITY UNDER9
	274	+	SUBSECTION (1) OF THIS SECTION.10
	275	+	(6) (a) NOTHING IN THIS SECTION DIMINISHES THE RIGHTS ,11
	276	+	PRIVILEGES, OR REMEDIES OF ANY EMPLOYEE UNDER ANY COLLECTIVE12
	277	+	BARGAINING AGREEMENT .13
219	278		(b) A
220		-	GENERAL CONTRACTOR MAY BRING A CROSSCLAIM FOR
221		-	INDEMNIFICATION AGAINST THE SUBCONTRACTOR EMPLOYER IN ANY ACTION
222		-	RELATED TO THE WAGE CLAIM
223		-	.
224		-	(3) A
225		-	SUBCONTRACTOR'S FAILURE TO INDEMNIFY THE GENERAL
226		-	CONTRACTOR IS NOT A DEFENSE TO ANY ACTION BROUGHT AGAINST THE
227		-	GENERAL CONTRACTOR PURSUANT TO SUBSECTION
228		-	(1) OF THIS SECTION.
229		-	(4) A
230		-	GENERAL CONTRACTOR MAY REQUIRE THE FOLLOWING
231		-	INFORMATION FROM EACH SUBCONTRACTOR ACTING UNDER
232		-	, BY, OR FOR THE
233		-	GENERAL CONTRACTOR
234		-	:
235		-	(a) P
236		-	AY DATA SHOWING THE HOURS WORKED , PAY, OVERTIME, AND
237		-	DEDUCTIONS FOR EACH INDIVIDUAL WORKER ENGAGED BY THE
238		-	SUBCONTRACTOR
239		-	, REGARDLESS OF WHETHER THE INDIVIDUAL WORKER IS
240		-	CLASSIFIED AS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR
241		-	'S
242		-	INDIVIDUAL LABORER
243		-	. THE SUBCONTRACTOR SHALL REDACT THESE RECORDS
244		-	TO DISCLOSE ONLY THE LAST FOUR DIGITS OF THE INDIVIDUAL WORKER
245		-	'S
246		-	SOCIAL SECURITY NUMBER OR INDIVIDUAL TAXPAYER IDENTIFICATION
247		-	NUMBER
248		-	.
249		-	(b) C
250		-	ONTACT INFORMATION FOR ALL ADDITIONAL SUBCONTRACTORS
251		-	THAT PERFORM ANY PORTION OF WORK WITHIN THE SCOPE OF THE
252		-	SUBCONTRACTOR
253		-	'S CONTRACT WITH THE GENERAL CONTRACTOR OR WITH
254		-	ANOTHER SUBCONTRACTOR THAT IS IN PRIVITY OF CONTRACT WITH THE
255		-	GENERAL CONTRACTOR
256		-	; AND
257		-	PAGE 6-HOUSE BILL 24-1008 (c) (I) AN AFFIDAVIT ATTESTING TO WHETHER THE SUBCONTRACTOR
258		-	OR ANY OF ITS CURRENT PRINCIPALS HAS PARTICIPATED IN ANY CIVIL OR
259		-	ADMINISTRATIVE PROCEEDING WITHIN THE PRECEDING FIVE YEARS THAT
260		-	INVOLVED ANY ALLEGATIONS OF A WAGE AND HOUR VIOLATION AGAINST
261		-	THE SUBCONTRACTOR OR PRINCIPAL UNDER LOCAL
262		-	, STATE, OR FEDERAL LAW;
263		-	AND
264		-	(II) IF THE PROCEEDING IS COMPLETE , THE OUTCOME OF THE
265		-	PROCEEDING
266		-	, INCLUDING ANY DAMAGES, FEES, OR PENALTY AMOUNTS PAID
267		-	TO WORKERS OR TO A GOVERNMENT AGENCY
268		-	.
269		-	(5) A
270		-	SUBCONTRACTOR'S FAILURE TO COMPLY WITH THIS SECTION
271		-	DOES NOT RELIEVE A GENERAL CONTRACTOR FROM LIABILITY UNDER
272		-	SUBSECTION
273		-	(1) OF THIS SECTION.
274		-	(6) (a) N
275		-	OTHING IN THIS SECTION DIMINISHES THE RIGHTS ,
276		-	PRIVILEGES, OR REMEDIES OF ANY EMPLOYEE UNDER ANY COLLECTIVE
277		-	BARGAINING AGREEMENT
278		-	.
279		-	(b) A
280		-	COLLECTIVE BARGAINING AGREEMENT MAY WAIVE THE
281		-	REQUIREMENTS OF THIS SECTION IF THE AGREEMENT
282		-	:
	279	+	COLLECTIVE BARGAINING AGREEMENT MAY WAIVE THE14
	280	+	REQUIREMENTS OF THIS SECTION IF THE AGREEMENT :15
283	281		(I) I
284		-	S ENTERED INTO BY A BONA FIDE BUILDING AND CONSTRUCTION
285		-	TRADE LABOR ORGANIZATION THAT HAS ESTABLISHED ITSELF OR ITS
286		-	AFFILIATES AS THE COLLECTIVE BARGAINING REPRESENTATIVE FOR PERSONS
287		-	PERFORMING WORK ON A PROJECT
288		-	;
289		-	(II) C
290		-	ONTAINS A GRIEVANCE PROCEDURE THAT RESULTS IN A FINAL
291		-	AND BINDING DECISION
292		-	;
293		-	(III) M
294		-	AY BE USED TO RECOVER UNPAID WAGES ON BEHALF OF
295		-	EMPLOYEES COVERED BY THE AGREEMENT
296		-	;
297		-	(IV) P
298		-	ROVIDES FOR THE COLLECTION OF UNPAID CONTRIBUTIONS TO
299		-	FRINGE BENEFIT TRUST FUNDS ESTABLISHED PURSUANT TO
300		-	29 U.S.C. SEC.
301		-	186 (c)(5)
302		-	AND (c)(6), BY OR ON BEHALF OF SUCH TRUST FUNDS ; AND
303		-	(V) DOES NOT DIMINISH OR IMPAIR THE RIGHTS OF AN EMPLOYEE
304		-	PROVIDED UNDER ANY OTHER SECTION OF THIS ARTICLE
305		-	4.
306		-	PAGE 7-HOUSE BILL 24-1008 SECTION 5. Appropriation. (1) For the 2024-25 state fiscal year,
307		-	$55,179 is appropriated to the department of labor and employment for use
308		-	by the division of labor standards and statistics. This appropriation is from
309		-	the general fund. To implement this act, the division may use this
310		-	appropriation for program costs related to labor standards. This amount is
311		-	based on an assumption that the division will require an additional 0.5 FTE.
312		-	(2) For the 2024-25 state fiscal year, $44,807 is appropriated to the
313		-	department of personnel for use by the executive director's office. This
314		-	appropriation is from the general fund. To implement this act, the
315		-	department may use this appropriation for the purchase of legal services.
316		-	(3) For the 2024-25 state fiscal year, $44,807 is appropriated to the
317		-	department of law. This appropriation is from reappropriated funds received
318		-	from the department of personnel under subsection (2) of this section and
319		-	is based on an assumption that the department of law will require an
320		-	additional 0.2 FTE. To implement this act, the department of law may use
321		-	this appropriation to provide legal services for the department of personnel.
322		-	SECTION 6. Act subject to petition - effective date -
323		-	applicability. (1) This act takes effect July 1, 2025; except that, if a
324		-	referendum petition is filed pursuant to section 1 (3) of article V of the state
325		-	constitution against this act or an item, section, or part of this act within the
326		-	ninety-day period after final adjournment of the general assembly, then the
327		-	act, item, section, or part will not take effect unless approved by the people
328		-	at the general election to be held in November 2024 and, in such case, will
329		-	take effect July 1, 2025, or on the date of the official declaration of the vote
330		-	thereon by the governor, whichever is later.
331		-	PAGE 8-HOUSE BILL 24-1008 (2) This act applies to wage claims brought and investigations
332		-	commenced on or after the applicable effective date of this act.
333		-	____________________________ ____________________________
334		-	Julie McCluskie Steve Fenberg
335		-	SPEAKER OF THE HOUSE PRESIDENT OF
336		-	OF REPRESENTATIVES THE SENATE
337		-	____________________________ ____________________________
338		-	Robin Jones Cindi L. Markwell
339		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
340		-	OF REPRESENTATIVES THE SENATE
341		-	APPROVED________________________________________
342		-	(Date and Time)
343		-	_________________________________________
344		-	Jared S. Polis
345		-	GOVERNOR OF THE STATE OF COLORADO
346		-	PAGE 9-HOUSE BILL 24-1008
	282	+	S ENTERED INTO BY A BONA FIDE BUILDING AND16
	283	+	CONSTRUCTION TRADE LABOR ORGANIZATION THAT HAS ESTABLISHED17
	284	+	ITSELF OR ITS AFFILIATES AS THE COLLECTIVE BARGAINING18
	285	+	REPRESENTATIVE FOR PERSONS PERFORMING WORK ON A PROJECT ;19
	286	+	(II) CONTAINS A GRIEVANCE PROCEDURE THAT RESULTS IN A FINAL20
	287	+	AND BINDING DECISION;21
	288	+	(III) MAY BE USED TO RECOVER UNPAID WAGES ON BEHALF OF22
	289	+	EMPLOYEES COVERED BY THE AGREEMENT ;23
	290	+	(IV) PROVIDES FOR THE COLLECTION OF UNPAID CONTRIBUTIONS24
	291	+	TO FRINGE BENEFIT TRUST FUNDS ESTABLISHED PURSUANT TO 29 U.S.C.25
	292	+	SEC. 186 (c)(5) AND (c)(6), BY OR ON BEHALF OF SUCH TRUST FUNDS; AND26
	293	+	(V) DOES NOT DIMINISH OR IMPAIR THE RIGHTS OF AN EMPLOYEE27
	294	+	1008
	295	+	-9- PROVIDED UNDER ANY OTHER SECTION OF THIS ARTICLE 4.1
	296	+	SECTION 5. Appropriation. (1) For the 2024-25 state fiscal2
	297	+	year, $55,179 is appropriated to the department of labor and employment3
	298	+	for use by the division of labor standards and statistics. This appropriation4
	299	+	is from the general fund. To implement this act, the division may use this5
	300	+	appropriation for program costs related to labor standards. This amount6
	301	+	is based on an assumption that the division will require an additional 0.57
	302	+	FTE.8
	303	+	(2) For the 2024-25 state fiscal year, $44,807 is appropriated to9
	304	+	the department of personnel for use by the executive director's office.10
	305	+	This appropriation is from the general fund. To implement this act, the11
	306	+	department may use this appropriation for the purchase of legal services. 12
	307	+	(3) For the 2024-25 state fiscal year, $44,807 is appropriated to13
	308	+	the department of law. This appropriation is from reappropriated funds14
	309	+	received from the department of personnel under subsection (2) of this15
	310	+	section and is based on an assumption that the department of law will16
	311	+	require an additional 0.2 FTE. To implement this act, the department of17
	312	+	law may use this appropriation to provide legal services for the18
	313	+	department of personnel.19
	314	+	SECTION 6. Act subject to petition - effective date -20
	315	+	applicability. (1) This act takes effect July 1, 2025; except that, if a21
	316	+	referendum petition is filed pursuant to section 1 (3) of article V of the22
	317	+	state constitution against this act or an item, section, or part of this act23
	318	+	within the ninety-day period after final adjournment of the general24
	319	+	assembly, then the act, item, section, or part will not take effect unless25
	320	+	approved by the people at the general election to be held in November26
	321	+	2024 and, in such case, will take effect July 1, 2025, or on the date of the27
	322	+	1008
	323	+	-10- official declaration of the vote thereon by the governor, whichever is1
	324	+	later.2
	325	+	(2) This act applies to wage claims brought and investigations3
	326	+	commenced on or after the applicable effective date of this act.4
	327	+	1008
	328	+	-11-